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AE BETTER WORLD ENVIRONMENT CONSERVING RESOURCES<br />

Conserving Resources outside parking areas. This reduction in wattage and the use of motion sensors also<br />

We’ve introduced measures to reduce the use of energy, water, and other natural<br />

resources in many areas of our company.<br />

Pittsburgh Corporate Office Location<br />

In 2007, we made a landmark decision to move our corporate world headquarters<br />

to the South Side neighborhood of Pittsburgh, Pennsylvania. Once home to many<br />

steel mills, the city of Pittsburgh has undergone a dramatic transformation in<br />

recent years with the revitalization of former industrial sites. As a local company,<br />

we wanted to support this urban renaissance.<br />

Today, our corporate headquarters sits on a brownfield site on the banks of the<br />

Monongahela River. Once home to a steel mill, the site has been cleared of all<br />

lingering contaminants and is now a lush green landscape dotted with parks,<br />

restaurants, shops, and office buildings. We are proud to call it home.<br />

Energy Audit of Corporate Office<br />

In July 2010, we conducted an energy audit of our main corporate office in<br />

Pittsburgh. The audit assessed our performance on energy, water, and waste, as<br />

well as the use of environmentally-friendly materials and innovation in design.<br />

The audit highlighted several important areas in our operations, in particular,<br />

opportunities to improve energy efficiency. Improving office energy efficiency is<br />

now a key priority for 2012.<br />

Energy Reduction in Distribution Centers<br />

We have introduced several initiatives over the past few years to reduce energy<br />

consumption in our three distribution centers.<br />

Lighting Retrofits<br />

In July 2010, we began a lighting retrofit project at our largest distribution facility<br />

in Kansas. The project included updating lighting fixtures and adding lighting<br />

sensors. We replaced 911 1000-watt fixtures with 480-watt high efficiency<br />

fluorescent fixtures, and we swapped out another 114 480-watt fixtures with 354watt<br />

fixtures. We were also able to replace half of the 1000-watt fixtures located in<br />

reduced our air conditioning needs. Our projected energy savings from the Kansas<br />

lighting retrofit is 7,741,469 kilowatt hours per year - an annual reduction of 38%.<br />

We are planning to implement similar lighting retrofits at our other two<br />

distribution centers in the near future. In the meantime, bulbs that burn out in our<br />

other two facilities are replaced individually with higher efficiency fixtures. We<br />

have also installed motion sensor lighting in less-trafficked areas, such as offices,<br />

restrooms, and parts of the warehouse floors. When the buildings are empty, all<br />

lighting is manually shut off and HVAC settings are adjusted to reduce energy<br />

consumption.<br />

“White” Roofs and HVAC Units<br />

We have reduced our energy usage at our Kansas and Pennsylvania distribution<br />

centers by installing white roofs, which absorb less heat from the sun and lower<br />

cooling needs in the summer months. At our Kansas facility, the entire roof was<br />

replaced with a white surface. In Pennsylvania, one third of the roof was replaced<br />

during the summer of 2010 and we hope to replace another sizeable portion in the<br />

near future. In the Pennsylvania distribution center, we also replaced 12 HVAC<br />

rooftop units with high efficiency SEER-15 units. The energy reduction has been<br />

considerable: our new HVAC units on the white roof portions have run 30% more<br />

efficiently since installation.<br />

Energy Reduction In Stores<br />

In May 2010, we introduced a new lighting policy for store management. All store<br />

lighting panels are now color-coded, with each color representing the time of day<br />

at which certain lights should be turned on. Before stores are open to customers,<br />

minimal lights are used. More lights are gradually turned on throughout the day to<br />

accommodate store and customer needs.<br />

In June 2010, we also introduced a policy instructing our open-air lifestyle center<br />

stores to keep their doors closed year-round so that we don’t waste energy trying to<br />

heat or cool outdoor space.<br />

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